Krispy Kreme Testing Smaller Doughnut Machine

Krispy Kreme Doughnuts says it is testing a new machine that will help expand sales of its sweet product into smaller stores.

Krispy Kreme said the machine is smaller than the current conveyor process and cooks and glazes dough prepared at a larger store.

Company officials said Friday the new machine will open sales opportunities in areas that don't have enough population to support a 4,000-square-foot factory store.

The machinery also can be used in malls, sports stadiums, airports and other areas that lack enough space.

Krispy Kreme will look initially to open its own smaller stores or kiosks, said Stan Parker, senior vice president of marketing.

The company will study whether to make the machine available in convenience and grocery stores that now get daily deliveries.

Scott Livengood, Krispy Kreme chairman and president, said the new technology came from two years of research and development.

Livengood said the company is preparing to open test markets for the smaller store concept and will reveal the locations later.

Krispy Kreme now has 750 stores in the United States and the new machine could help expand that number. In the international market, where space is at a premium, the new machine could increase sales.